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How to Start a Grocery Delivery Service?

3 Jun 19  

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shopping cart on market

Online Shopping has seen a huge boom not just in India, but all over the world. From electronics to clothes and now groceries too, online shopping has changed the conventional way of shopping. You can definitely save a lot of time with online grocery shopping app and get to choose from a huge variety of products. And yes, you get to save a lot of money too.

Online grocery delivery works on the principle of immediate and quick delivery of products as per the convenient time of the customer. Mostly, every online grocery delivery stores work on this principle to keep their service running successfully.

How does an online grocery delivery model work?

On-demand grocery model works on the principle of delivering an item from vendor to the customer as per the preferred time of the latter. Here are two ways in which this model works:

  • You can display the grocery items on your websites from where the customers can select the grocery and its quantity. The customers won’t be aware where you got those groceries from, but that doesn’t matter as long as they get their groceries on time.
  • The third option is where an online store owner decides to go online and to provide online ordering and delivery as well. In this scenario, the store owner needs to manage from warehousing, logistics to delivery.

Now let’s list down some of the business strategies to stand out in the online grocery delivery.

  • Study the market: The initial step to consider is to study the market. In groceries, the profitability will be low if you tend to start your grocery delivery business in a rural area. Densely populated areas should be your primary focus to start your online grocery services.
  • Set specific product categories: What kind of groceries do you plan to deliver? Do you have your own grocery store or any vendor from where you can purchase at a discounted rate.
  • Plan your marketing and advertising strategy: In order to make your online grocery delivery a hit among the customers, you must have a solid marketing plan since this is a service-based platform.For a new business owner, there is no better way than building a website for marketing and advertising for your business. These are the easiest and cheapest way to reach the maximum audience.
  • Come up with a unique grocery delivery business plan: Design your business concept in a unique way. Outline the specialties you offer through your venture. A business plan would provide you with the correct direction to your business and help you to achieve your business goals.

Also Read

Key features to consider for an online grocery app development

Prominent Names in Grocery Delivery Service Model 

Since we understand what this specific business model looks like, and how it affects the business, it’s an ideal opportunity to investigate the real players in the market. 


Postmates is inarguably the most noticeable player in this industry. With their services spanned over 15 states in the USA, Postmates enjoys a massive presence and serves a high number of customers.

Since its inception in 2011, they have conveyed more than 1 billion products and created an income surpassing 250 million dollars. Now that is a number! 


Instacart is another major online merchandise service provider with a global reach. 
As of March 2017, Instacart delivered daily items to more than 1200 cities in about 25 states of USA. With groceries delivered approximately to a worth of about $3.4 Billion. 


At present, they mainly focus their services in New York City Area (Manhattan, Brooklyn and Queens), San Francisco and Chicago. UberRUSH is an on-demand delivery service initiated by Uber, a brand that doesn’t need any introduction. 

While Postmates and Instacart mainly focus in B2C sector, UberRUSH takes a shot at a B2B model. In addition, UberRUSH does not offer delivery services for restaurants since they have UberEATS for this reason. 


Being a linking factor between the vendors and customers, you have to ensure the order gets delivered on time since that is the core of this plan of action. To make things more feasible for your organization, see how different orders can be delivered to a different destination, however on the same route. Contact our team to explore more opportunities in your online grocery business.

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